Standard Life Investments Property Income Trust has completed three separate purchases in Manchester, Birmingham and Reading, with a total investment value of approximately €28.6m (£26m). These purchases mean the Trust is now fully invested, with an on-going strategy to reduce exposure to assets with future void risk, whilst investing in properties with stronger rental growth opportunities in core locations.
The Trust has purchased 101 Princess Street, a multi-let Grade II listed converted warehouse office located in the heart of Manchester city centre, in an off-market transaction for approximately €8.9m (£8.1m). The historic building recently underwent an extensive refurbishment and covers 40,000 ft² across seven storeys. It is fully let to tenants including Inspired Gaming and co-working space provider Accelerate Places.
It has also completed a deal to buy The Pinnacle, a multi-let office in Reading town centre for around €14.7m (£13.4m). The 41,721 ft² property is set across six floors and is located just 150 metres from the recently redeveloped central Reading train station.
Separately, the Trust has purchased a single let warehouse unit at Nexus Point, Birmingham. The 46,800 ft² unit was recently let on a straight 15-year lease, and is located in an established industrial/distribution location close to an existing investment held by the Trust. The €4.9m (£4.5m) purchase price represented a yield of 5.75%.
At the same time, the Trust has sold a 26,000 ft² office on York Science Park for €3.7m (£3.4m).
Jason Baggaley, Fund Manager of the Standard Life Investments Property Income Trust, commented: “All three of the purchases are in established locations which are seeing rental growth, and the office purchases provide opportunity for asset management. The sale continues our policy to reduce exposure to out of town offices and focus on good quality buildings in core locations.”
